Cash buyer - New builds - over priced?

Cakeguts

AdrianC wrote: »

They are a cash buyer - in that they don't need a mortgage. They are paying with 100% equity. 0% LtV.
They just aren't a chain-free cash buyer...

I know what you mean but it is no good them going to the builder and saying that they are a cash buyer because what they are is not the traditional definition of a cash buyer who is someone who is not dependent on selling a property. It is that not dependent on selling a property that makes a true cash buyer so attractive to someone who wants a quick sale because there is no chain.



We had this very problem when selling my mother's house. (She was in a home) So we needed the money from the house to help with care home fees. A lady told the estate agents that she was a cash buyer and as my mother was a true cash buyer for the house originally we assumed that this is what this buyer was. It turned out eventually that she wasn't a real cash buyer because she had to sell her own house to get the cash which actually put her in the same position as someone needing a mortgage because the time scales were likely to be the same. I wish people would be honest about their financial situations from the start. House buying and selling is stressful as it is without people trying to make out they are something they are not.

ethank

Developers don't look at cash buyer or not. They look at dependent buyers (need to sell something to buy theirs) or non-dependant (don't need to sell something to buy theirs) - a non-dependant buyer will trump every other purchaser because they can get their money faster. A developer wants the property to have exchanged contracts as quick as possible as that's the only point that the sale is a certainty to them

Zero_Sum

You can normally get 5% discount if not part exing (for larger developments where part ex is available)

AnotherJoe

Cakeguts wrote: »

Y
It is extremely annoying if you are selling a house to be told by someone that they are a cash buyer only to find out later that they aren't because they are depending on selling their current home to get the money to buy the new one.

^^^^ this. Something worth asking of every buyer, not "do you need a mortgage?" but "do you need to sell a property?"

MobileSaver

AdrianC wrote: »

They are a cash buyer - in that they don't need a mortgage.

Sorry, I'm with Cakeguts, the OP is not a cash buyer. They may become a cash buyer if they manage to sell their existing property for a high enough amount before purchasing the next one but here and now today they would be misrepresenting themselves if they said they were a cash buyer.

AdrianC

...which all shows the pointlessness of getting hung up on these glib phrases, since there's no universal definition...

AnotherJoe

I think the definition most work to and understand when they hear it is "don't need to sell to buy" and it's misleading for someone who needs to sell saying they are a cash buyer.

sal_III

The new builds that offer HTB are not overprices by virtue of the Government paying 20%. Their price, as any other property is based on supply and demand, and since they can be sold to a wider pool of buyers, the demand is higher, driving the price up.

The overall new build premium is universal, not unique to HTB. Some people would prefer them for the 10 years warranty and generally better energy efficiency, others will swear by an "aged" property with all the defects already apparent.

The bottom line is, you have no unique bargaining power, that shouldn't stop you from trying.